VAT

1. Consider making big purchases before 4th January 2012 when VAT goes up to 20% from 17.5% especially if you are not VAT registered and cannot recover input VAT.

Income Tax

1. It may be more tax efficient for some self-employed to carry out their trade through a limited company because of the lower CT rate.
2. Invest in personal pension plan as contributions will attract tax relief in your pension and will increase your basic rate threshold resulting in less income being taxed at the higher rate.

Capital Gains Tax

1. Sell gradually - Realise gains in stages to ensure you use your annual allowance of £10,100 each year.
2. Use your spouse - Each of you have a £10,100 annual allowance so consider transferring assets into a basic taxpaying spouse and they will then only pay CGT on 18% of the gain rather than the new higher rate of 28%.
3. ISAS - Transfer assets into ISA's to ensure they are CGT free in future. The annual ISA limit is £10,200.
4. Principal private residence (PPR) flipping - Your main home or "principal private residence" is not subject to CGT. If a property has been register as your PPR at some point, even if only for a week, the last 3 years of ownership will be exempt from CGT.
5. Use a Company to hold your buy-to-lets but only if you will move to a lower rate tax band before you intend to sell, eg after retiring.
6. Timing of sales is important and it is worth thinking carefully about selling capital loss items before or in the same year as realising capital gains to offset them.

Penalties

1. Avoid the higher penalties for late returns and payments by ensuring yours are filed and paid comfortably within the deadlines.

Circumstances for every individual and business will be different. Please contact Browns Accountancy & Taxation to discuss these and other aspects of the budget further.